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April 14, 2011

Colorado Grocery Store Jobs Gain Could Mean Overall Job Loss

Although Colorado grocery store jobs (http://grocery.coloradojobs.com) would greatly benefit from a new beer law, many jobs in Denver (Click here) and state liquor stores and breweries would be negatively affected.

For years, state law allowed grocery and convenience stores to only sell low-strength beer, but that law was recently overturned by Roxy Huber, executive director of the Colorado Department of Revenue.

However, many experts think that allowing grocery and convenience stores to sell full-strength beer would cause great competition for local breweries and liquor stores, and could result in the loss of many jobs.

There are currently 1,650 small independent liquor stores throughout Colorado that produce revenues of about $1.9 billion each year. Those stores employ 2,500 proprietors and 7,500 workers and provide about $190 million in wages.

According to the report, Colorado has more liquor stores per capita than 45 other states. Those stores outperform others in the nation when it comes to small business development, entry-level job creation, and wage growth.

The report found that if grocery and convenience stores are allowed to begin selling full-strength beer, liquor stores will lose about 50 percent of their sales within the first year and 70 percent of their sales within the first three to five years.

Those sales decreases would cause about 700 stores - or 40 percent of the industry - to close within the first three years. Those closures would result in the loss of about 4,830 jobs and about $700 million in annual revenues. After the law has been in effect for five years, about 900 stores will have closed, resulting in the loss of 5,500 jobs.

Overall, about 8,600 direct and indirect jobs would be lost within the first three years of the law, while a total of 10,000 jobs could be lost by the fifth year. That will translate into the loss of $200 million in annual wages by the third year and $240 million in annual wages by the fifth year.